Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Kelsian Group Completes Tourism Portfolio Sale, Updates FY27 Guidance
Highlights:
Tourism Portfolio Divestment Completed
Kelsian Group Limited (ASX: KLS) confirmed on 30 September 2026 that the divestment of its Tourism Portfolio to Journey Beyond had been completed. The transaction generated AU$149.9 million in gross cash proceeds, including AU$4.3 million from preliminary working capital and net debt adjustments.
The divestment marks a shift towards a more focused business centred on commuter and contracted transport operations. Kelsian said the transaction reduces capital intensity and its exposure to discretionary consumer spending, while increasing the proportion of earnings generated from its core transport activities.
The company noted that the sale has strengthened its balance sheet, with pro forma leverage falling to approximately 2.0 times. The transaction also enables Kelsian to concentrate capital on its bus, motorcoach and marine transportation operations across its key markets. Kelsian Group Limited was quoted at AU$4.200, up AU$0.290 or 7.416%, according to the market data provided.
FY27 Earnings Guidance Revised
Following completion of the divestment, Kelsian has revised its FY27 financial guidance to exclude the Tourism Portfolio for the entire financial year. The company now forecasts Underlying EBITDA of AU$310 million, assuming there is no significant deterioration in operating conditions. The updated FY27 guidance factors in approximately AU$3 million in stranded costs.
Kelsian also provided updated FY27 estimates, including depreciation of approximately AU$132 million, amortisation of around AU$23 million, and interest expense of approximately AU$50 million. Capital expenditure is expected to be about AU$116 million, including AU$15 million deferred from FY26.
Outlook
Kelsian said trading during the early part of FY27 has remained in line with expectations. The company identified a strong pipeline of organic and inorganic growth opportunities, with a particular focus on the United States and United Kingdom. With the Tourism Portfolio divestment completed, Kelsian is expected to operate with a greater focus on contracted and commuter transport services. The company intends to maintain a disciplined approach to capital allocation, targeting opportunities that support long-term growth while leveraging its strengthened balance sheet.
Note- All data presented is based on information available at the time of writing.
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